Estrella Resources has been buoyed by more positive assay results and the bonus of additional key infrastructure as the company moves towards production at its Spargoville nickel project near Kambalda in WA’s Goldfields.
Latest results from resource drilling below the Spargoville 5A deposit include a 6.8m hit going 4.4 per cent nickel from 66.2m including 1.76m at 10.21 per cent.
A second hole recorded a 4.05m section reading 3.05 per cent nickel from 76.9m including a 1.28m hit at 7.28 per cent.
The company is also waiting on assay results from another two holes that both intersected more than 2.6m of massive and semi-massive sulphides.
In an additional bonus for Estrella, following the completion of the nearby Goldfields-Esperance Highway upgrade, the Department of Main Roads has handed over control of key infrastructure.
This includes a one-million-litre-lined and fenced dam at the Andrews Mine and a cleared, five-acre pad at the 5B nickel mine.
Estrella says after confirming good mining widths and high grades below the 5A open pit’s southern and central sections, plans for an updated mineral resource are well underway.
It says the removal of drill water from the base of the open pit is nearing completion and is expected to take another 10 days. Once completed, pit-floor clean-up and preparations for the removal of the bulk sample will commence.
Estrella says the addition of the Main Roads infrastructure will assist in fast-tracking the bulk sample expected in October.
Estrella Resources Managing Director, Chris Daws said: “As expected, we continue to see very high-grade assays returned from the recent confirmation diamond drilling of the 5A nickel deposit. Planning for the extraction of the bulk sample has progressed significantly and I look forward to updating shareholders on how, where and when we are able to deliver these valuable nickel tonnes for processing as the company steps towards a profitable nickel operation.”
Assay results from earlier this month include 3.45m going 5.46 per cent nickel from 70m, containing a high-grade 1.2m at a stunning 10.85 per cent from 72m, 11.12m at 1.68 per cent from 59m and 2.7m at 2.47 per cent from 74m.
Estrella picked up the Spargoville project in late 2017 when it bought WA Nickel with planning ongoing for an open pit cutback at 5A.
The expansion of the 5A nickel mine is envisaged as an 80m-deep cutback of the existing open pit that is currently 30m deep.
Estrella Resources says as the outlook for nickel prices continue to look favourable, the timing to plan and develop a nickel mining operation could not be better.
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By Matt Birney
